The unit cost of labor for the packaging operator who finished 2179 units is approximately $0.195 per unit. This is calculated by first determining the hourly wage including benefits and then dividing the total weekly labor cost by the number of units produced.
Calculating the Unit Cost of Labor
To calculate the unit cost for labor for the packaging operator, we need to first determine the total labor cost including fringe benefits. The operator earns $14.17 per hour and works 25 hours a week, and with a fringe benefit rate of 20%, the total hourly wage including benefits would be $14.17 + ($14.17 × 0.20) = $14.17 + $2.834 = $17.004 per hour. Multiplying this by the number of hours worked gives us the total labor cost for the week: $17.004 × 25 hours = $425.10.
Next, to find the unit cost for labor per unit produced, we divide the total labor cost by the number of units finished. The operator finished 2179 units, so the unit cost for labor is $425.10 / 2179 units = approximately $0.195 per unit.